Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Could the future of credit reporting be all new, different?

Part of three big settlements the big three credit bureaus have made over credit reporting mistakes recently (the other two were with the AG of New York and the AG of Mississippi), Equifax, Experian, and TransUnion have settled a 31 state class action suit; paying a fine and, more importantly, ensuring future errors are limited…

“Big 3” Credit Bureaus Settle With 31 States Over Credit Reporting Mistakes

The big story here isn’t the fine, $5 million is a lot of money but nothing to these guys, but how credit reporting is going to be affected going forward. The original settlement is now two year’s old but today the changes are starting to take effect…

Not the least important is the fact that they will now have to hold newly reported medical collection data before putting it on a credit report. This is very important because, more often than not, these kind of collections show up on someone’s credit report before they even find out someone is trying to collect the debt. It gives time for them to handle things, or dispute the debt, before it can ever hit someone’s credit report.
Speaking of disputing debts, the other big part of the settlement is about how these agencies investigate disputes. Up until now the onus was definitely on the consumer (you and me), and even when we are right about something if the creditor responded to the dispute request saying the debt is valid the credit bureau would often side with the creditor and nothing would change about the way the debt was reported.

Going further, and I think this is big, collection agencies now have to include in their reporting who the original creditor was. This might not sound like a big thing but as someone that has literally ready many thousands (probably tens of thousands) of credit reports over the years, helping hundreds of people correct errors on them, I can’t begin to tell you how frustrating it ts to try and help someone fix a collection on a credit report where the collection agency isn’t even saying who the original creditor was!

It remains to be seen how these changes will be implemented, but it is nice to know someone is finally doing something about this. For decades now there was little to no oversight over these companies, companies who’s product might determine whether you get that job or apartment. Not to mention a mortgage!

If you have any questions or would like any help with your credit, or anything else for that matter, please don’t hesitate to reach out…

Greg!

(916) 412-3313

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